|6 Months Ended|
Jun. 30, 2020
|Subsequent Events [Abstract]|
Note 11. Subsequent Events
Complaint Filed Against the Company
On July 9, 2020, James Schweikert, the former COO of the Company, filed a complaint against the Company alleging breach of his employment agreement with the Company. Mr. Schweikert is seeking enforcement of the severance provisions of his employment agreement, stock awards and other unspecified compensatory damages. The Company is currently in discussions to settle this matter.
Issuance of Restricted Stock Units
On August 6, 2020, the Company issued 140,000 RSUs in satisfaction of approximately $90,000 in accounts payable. If the Company pays all or a portion of this payable prior to September 5, 2020, a pro rata portion of the RSUs would be returned to the Company.
On August 10, 2020, Timothy A. Hannibal accepted the appointment of President and COO of the Company. In connection with his appointment, the Company issued Mr. Hannibal 200,000 RSUs, of which 100,000 vest in ninety days, and the remaining 100,000 vest in six equal quarterly installments, commencing February 7, 2021 and every 90 days thereafter, until fully vested. 99,226 RSUs were issued to Mr. Hannibal in satisfaction of $153,800 of indebtedness for services, and are fully vested. 307,581 RSUs were issued to him compensation for services and vest in three equal semi-annual installments commencing October 7, 2020.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef